Nokia had a Q2 loss of Euros 1.4bn on sales down 19% to Euros 7.5bn and smartphone sales falling 34% to Euros 1.5bn. Y-o-Y revenues were down 26%
CEO Stephen Elop blamed it on “greater than expected competitive challenges”.
Four million Lumia smartphones out of a total of 10m smartphones were sold. Nokia halved the Lumia price last week.
Euros 220m worth of stock of unsold phones was written off.
Nokia still has Euros 4.2bn in the bank. It had Euros 4.9bn cash at the end of Q1. At the end of December it had Euros 5.6bn and, at the end of March 2011 it had Euros 6.4bn. Nokia has Euros 4.75bn of debt. It is scheduled, at its present burn-rate, to run out of cash next year.
Microsoft is not giving Nokia its updated mobile OS which could affect sales of its flagship Lumia phone.